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A Discrete Model for Patent Valuation

Author

Listed:
  • Roy Cerqueti

    (University of Macerata, Italy. Department of Economic and Financial Institutions)

  • Marco Ventura

    (ISAE - Institute for Studies and Economic Analyses)

Abstract

This article evaluates patents in a stochastic discrete time framework following the real options approach. By modeling the dynamics of the underlying as a spatial point process both size and time of the jumps can be treated as random variables. The propagation of the jumps from the underlying security to the patent value is not restricted to be immediate, but can occur with a random delay and with varying intensity, depending on the time to maturity. These actual features lead to a more generalized formula for patent value, that in turn may give rise to a non trivial difference in patent value, not accounted for in the existing literature.

Suggested Citation

  • Roy Cerqueti & Marco Ventura, 2009. "A Discrete Model for Patent Valuation," ISAE Working Papers 120, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    • Handle: RePEc:isa:wpaper:120
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    patent value; spatial mixed Poisson process; real options.;
    All these keywords.

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools

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